(a) For the purposes of this section, (1) “manufacturing reinvestment account” means a trust created or organized by a manufacturer and held by a Connecticut bank for the benefit of such manufacturer, to which the manufacturer may make cash contributions not to exceed the amount set forth in subsection (c) of this section for any income year. Moneys in a manufacturing reinvestment account shall not be invested in life insurance contracts or comingled with other property, and (2) “manufacturer” means any business entity subject to tax pursuant to chapter 208 or 229 that is engaged in the business of manufacturing, as defined in subdivision (72) of section 12-81.
(b) The Department of Economic and Community Development shall establish criteria and guidelines to select not more than fifty manufacturers that may establish a reinvestment account pursuant to subsection (c) of this section. Such criteria shall include, but not be limited to, a requirement that any such manufacturer shall have not more than one hundred fifty employees. The department shall, based on the criteria established pursuant to this subsection, establish an ongoing list of selected manufacturers.
(c) Any manufacturer may establish an interest-bearing manufacturing reinvestment account, provided (1) contributions in any income year shall not exceed the lesser of (A) fifty thousand dollars in income years commencing on or after January 1, 2011, and prior to January 1, 2012, or one hundred thousand dollars in income years commencing on or after January 1, 2012, or (B) such manufacturer's domestic gross receipts, (2) moneys may be held in such account for not more than five years, (3) distributions from such account shall be used by such manufacturer to purchase machinery or equipment for use in the state or manufacturing facilities, as defined in subdivision (72) of section 12-81, or for workforce training, development or expansion in the state, and (4) distributions shall be treated in accordance with the provisions of chapter 208 or 229.
(d) Any money remaining in a manufacturing reinvestment account at the end of the five-year period after such account's creation or organization, including any interest earned remaining, shall be returned to the manufacturer and shall be treated in accordance with the provisions of chapter 208 or 229.
(P.A. 11-140, S. 4; Oct. Sp. Sess. P.A. 11-1, S. 18; June 12 Sp. Sess. P.A. 12-1, S. 192, 193; P.A. 14-69, S. 1.)
History: P.A. 11-140 effective July 1, 2011, and applicable to income years commencing on or after January 1, 2011; Oct. Sp. Sess. P.A. 11-1 amended Subsec. (b) to allow 100 manufacturers, rather than 50, to establish accounts and amended Subsec. (c) to increase annual set-aside amount in income years on or after January 1, 2012, from $50,000 to $100,000, effective October 27, 2011; June 12 Sp. Sess. P.A. 12-1 amended Subsec. (c) to add “for use in the state” and “in the state” in Subdiv. (3) and replace “disbursements” with “distributions” and replace provision re tax rate of three and one-half per cent with provision re treatment in accordance with Ch. 208 or 229 in Subdiv. (4), and amended Subsec. (d) to replace provision re timely payment of tax with provision re treatment in accordance with Ch. 208 or 229 and make technical changes, effective June 15, 2012; P.A. 14-69 amended Subsec. (b) to change “one hundred manufacturers” to “fifty manufacturers” and change “fifty employees” to “one hundred fifty employees”, effective July 1, 2014.